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Reverse Charge GST

satender (non) (125 Points)

13 November 2020

I am a GST registered person in Delhi if I am buy Interstate services from Unregistered then Reverse charge applicable. So in this case we need to pay CGST & SGST or IGST will pay.

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9 Replies

prasad Nilugal (3924 Points)
Replied 13 November 2020

What type of service you have received ?.

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satender (non) (125 Points)
Replied 13 November 2020

GTA & Consulting Service and Professional Service

Shivam RC (Student) (23683 Points)
Replied 13 November 2020

For the GTA Services, you are required to pay GST @ 5% under RCM basis ( IGST ) by virtue of Section 9(3) of the CGST Act 2017 read with Notification No. 13/2017 - Central Tax ( Rate ), dated 28th June 2017.

As far as the Professional Services is concerned, you are not required to pay GST under RCM basis since RCM on Purchase from URD [ Section 9(4) of the CGST Act 2017 ] is now applicable only on specified goods or services procured by specified persons. Professional Services is not a specified service for RCM U/s 9(4) of the Act .

RCM on Purchase from URD is now applicable only on Real Estate Transaction and Developer / Promoter is a specified person.

Ranga raj (still studying) (122 Points)
Replied 14 November 2020

What kind of professional service?

satender (non) (125 Points)
Replied 14 November 2020

A person who is additional director in my company and having some ownership right in other consultancy firm. this firm is giving recruitment service to my company and giving recruitment bills to my company as well above person raising a bill from his firm for the service name 'requitioner of director' this firm is not registered in GST and I am booking his invoice in reverse charge and making his payments after deducting TDS u/s 194j @ 7.5%. So plz advice it is right way to accounting.

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Ranga raj (still studying) (122 Points)
Replied 14 November 2020

Consulting firm doesn't attract GST on RCM basis. But services provided to a director of a company attracts GST on RCM basis and the related ITC can be claimed.

satender (non) (125 Points)
Replied 14 November 2020

If firm is unregisterd and giving consultancy charge bill to my company then it will not booked in rcm ?

Ranga raj (still studying) (122 Points)
Replied 14 November 2020

No, it will not come under RCM on GST.

satender (non) (125 Points)
Replied 14 November 2020

We have to booked the consultancy charge bill with its amount and need to pay bill after deducting TDS accordingly. no other account will effect to it. u mean.